(3)10The business plan must, in particular, explain how the Board proposes to achieve the objectives, and comply with the requirements, specified in the mandate for the first financial year to which the plan relates.

(4)The Board may revise the plan.

(5)The Board must publish any revised plan.

13T15Annual report

(1)As soon as practicable after the end of each financial year, the Board must publish an annual report on how it has exercised its functions during the year.

(2)The annual report must, in particular, contain an assessment of—

(a)20the extent to which it met any objectives or requirements specified in the mandate for that year,

(b)the extent to which it gave effect to the proposals for that year in its business plan, and

(c)how effectively it discharged its duties under sections 13E and 2513P.

(3)The Board must—

(a)lay the annual report before Parliament, and

(b)once it has done so, send a copy of it to the Secretary of State.

(4)The Secretary of State must, having considered the annual report, set 30out in a letter to the Board the Secretary of State’s assessment of the Board’s performance of its functions in the financial year in question.

(5)The letter must, in particular, contain the Secretary of State’s assessment of the matters mentioned in subsection (2)(a) to (c).

(6)The Secretary of State must—

(a)35publish the letter to the Board, and

(b)lay it before Parliament.

Additional powers

13UEstablishment of pooled funds

(1)The Board and one or more commissioning consortia may establish and 40maintain a pooled fund.

(2)A pooled fund is a fund—

Health and Social Care BillPage 22

(a)which is made up of contributions by the bodies which established it, and

(b)out of which payments may be made, with the agreement of those bodies, towards expenditure incurred in the discharge of 5any of their commissioning functions.

(3)In this section, “commissioning functions” means functions in arranging for the provision of services as part of the health service.

13VBoard’s power to generate income, etc.

(1)The Board has power to do anything specified in section 7(2) of the 10Health and Medicines Act 1988 (provision of goods, services, etc.) for the purpose of making additional income available for improving the health service.

(2)The Board may exercise a power conferred by subsection (1) only to the extent that its exercise does not to any significant extent interfere with 15the performance by the Board of its functions.

13WPower to make grants etc.

(1)The Board may make payments by way of grant or loan to a voluntary organisation which provides or arranges for the provision of services which are similar to the services in respect of which the Board has 20functions.

(2)The payments may be made subject to such terms and conditions as the Board considers appropriate.

13XBoard’s incidental powers: further provision

The power conferred on the Board by section 2 includes in particular 25power to—

(a)enter into agreements,

(b)acquire and dispose of property, and

(c)accept gifts (including property to be held on trust for the purposes of the Board).

30Exercise of functions of Board

13YExercise of functions

(1)This section applies to functions exercisable by the Board under or by virtue of this Act or any prescribed provision of any other Act.

(2)The Board may arrange for any such function to be exercised by or 35jointly with—

(a)a Special Health Authority,

(b)a commissioning consortium, or

(c)such other body as may be prescribed.

(3)Regulations may provide that the power in subsection (2) does not 40apply in relation to a function of a prescribed description.

(4)Where any functions are (by virtue of subsection (2)) exercisable jointly by the Board and another body, they may be exercised by a joint committee of the Board and the other body.

Health and Social Care BillPage 23

(5)Arrangements under this section may be on such terms and conditions (including terms as to payment) as may be agreed between the Board and the other party to the arrangements.

(6)Arrangements made under this section do not affect the liability of the 5Board for the exercise of any of its functions.

Power to confer additional functions

13ZPower to confer additional functions on the Board

(1)Regulations may provide that the Board is to have such additional functions in relation to the health service as may be specified in the 10regulations.

(2)A function may be specified in regulations under subsection (1) only if the function is connected to another function of the Board.

Intervention powers

13Z1Failure by the Board to discharge any of its functions

(1)15The Secretary of State may give a direction to the Board if the Secretary of State considers that—

(a)the Board—

(i)is failing or has failed to discharge any of its functions, or

(ii)20is failing or has failed properly to discharge any of its functions, and

(b)the failure is significant.

(2)A direction under subsection (1) may direct the Board to discharge such of those functions, and in such manner and within such period or 25periods, as may be specified in the direction.

(3)If the Board fails to comply with a direction under subsection (1), the Secretary of State may—

(a)discharge the functions to which it relates, or

(b)make arrangements for any other person to discharge them on 30the Secretary of State’s behalf.

(4)Where the Secretary of State exercises a power under subsection (1) or (3), the Secretary of State must publish the reasons for doing so.

Disclosure of information

13Z2Permitted disclosures of information

(1)35The Board may disclose information obtained by it in the exercise of its functions if—

(a)the information has previously been lawfully disclosed to the public,

(b)the disclosure is made under or pursuant to regulations under 40section 113 or 114 of the Health and Social Care (Community Health and Standards) Act 2003 (complaints about health care or social services),

Health and Social Care BillPage 24

(c)the disclosure is made in accordance with any enactment or court order,

(d)the disclosure is necessary or expedient for the purposes of protecting the welfare of any individual,

(e)5the disclosure is made to any person in circumstances where it is necessary or expedient for the person to have the information for the purpose of exercising functions of that person under any enactment,

(f)the disclosure is made for the purpose of facilitating the exercise 10of any of the Board’s functions,

(g)the disclosure is made in connection with the investigation of a criminal offence (whether or not in the United Kingdom), or

(h)the disclosure is made for the purpose of criminal proceedings (whether or not in the United Kingdom).

(2)15This section has effect notwithstanding any rule of common law which would otherwise prohibit or restrict the disclosure.

Interpretation

13Z3Interpretation

In this Chapter, “the health service” means the health service in 20England.”

21Financial arrangements for the Board

25Before the cross-heading preceding section 224 of the National Health Service Act 2006 insert—

“The Board

223BFunding of the Board

(1)The Secretary of State must pay to the Board in respect of each financial 30year sums not exceeding the amount allotted for that year by the Secretary of State towards meeting the expenditure of the Board which is attributable to the performance by it of its functions in that year.

(2)An amount is allotted to the Board for a financial year under this section when the Board is notified in writing by the Secretary of State 35that the amount is allotted to it for that year.

(3)The Secretary of State may make a new allotment under this section increasing or reducing the allotment previously so made only if—

(a)the Board agrees to the change, or

(b)the Secretary of State considers that there are exceptional 40circumstances that make a new allotment necessary.

(4)The Secretary of State may give directions to the Board with respect to the payment of sums by it to the Secretary of State in respect of charges or other sums referable to the valuation or disposal of assets.

Health and Social Care BillPage 25

(5)Sums falling to be paid to the Board under this section are payable subject to such conditions as to records, certificates or otherwise as the Secretary of State may determine.

223BCFinancial duties of the Board: expenditure

(1)5The Board must ensure that total health expenditure in respect of each financial year does not exceed the aggregate of—

(a)the amount allotted to the Board for that year under section 223B,

(b)any sums received by the Board or commissioning consortia in 10that year under any provision of this Act (other than sums received by the Board under section 223B or by commissioning consortia under section 223G), and

(c)any sums received by the Board or commissioning consortia in that year otherwise than under this Act for the purpose of 15enabling it or them to defray such expenditure.

(2)In this section, “total health expenditure”, in relation to a financial year, means—

(a)expenditure which is attributable to the performance by the Board of its functions in that year, other than sums paid by it 20under section 223G, and

(b)expenditure which is attributable to the performance by commissioning consortia of their functions in that year.

(3)The Secretary of State may by directions determine whether expenditure by the Board or a commissioning consortium which is of a 25description specified in the directions must, or must not, be treated for the purposes of this section as part of total health expenditure.

(4)The Secretary of State may by directions determine the extent to which, and the circumstances in which, sums received by the Board or a commissioning consortium under section 223B or (as the case may be) 30223G but not yet spent must be treated for the purposes of this section as part of total health expenditure, and to which financial year’s expenditure they must be attributed.

(5)The Secretary of State may by directions require the Board to use banking facilities specified in the direction for any purposes so 35specified.

223DFinancial duties of the Board: controls on total resource use

(1)In this Chapter—

“total capital resource use”, in relation to a financial year, means the use of capital resources in that year by the Board and 40commissioning consortia (taken together);

“total revenue resource use”, in relation to a financial year, means the use of revenue resources in that year by the Board and commissioning consortia (taken together).

(2)The Board must ensure that total capital resource use in a financial year 45does not exceed the amount specified by the Secretary of State.

(3)The Board must ensure that total revenue resource use in a financial year does not exceed the amount specified by the Secretary of State.

Health and Social Care BillPage 26

(4)The Secretary of State may give directions, in relation to a financial year, specifying descriptions of resources which must, or must not, be treated as capital resources or revenue resources for the purposes of this Chapter.

(5)5The Secretary of State may give directions, in relation to a financial year, specifying uses of capital resources or revenue resources which must not be taken into account for the purposes of this Chapter.

(6)The Secretary of State may give directions, in relation to a financial year, specifying uses of capital resources or revenue resources which 10must be taken into account for the purposes of this section.

(7)The amount specified for the purposes of subsection (2) or (3) may be varied only if—

(a)the Board agrees to the change, or

(b)the Secretary of State considers that there are exceptional 15circumstances which make the variation necessary.

(8)Any reference in this Chapter to the use of capital resources or revenue resources is a reference to their expenditure, consumption or reduction in value.

223EFinancial duties of the Board: additional controls on resource use

(1)20The Secretary of State may direct the Board to ensure that total capital resource use in a financial year which is attributable to matters specified in the direction does not exceed an amount so specified.

(2)The Secretary of State may direct the Board to ensure that total revenue resource use in a financial year which is attributable to matters 25specified in the direction does not exceed an amount so specified.

(3)The Secretary of State may direct the Board to ensure —

(a)that total revenue resource use in a financial year which is attributable to such prescribed matters relating to administration as are specified in the direction does not exceed 30an amount so specified;

(b)that the Board’s use of revenue resources in a financial year which is attributable to such prescribed matters relating to administration as are specified in the direction does not exceed an amount so specified.

(4)35The Secretary of State may give directions, in relation to a financial year, specifying uses of capital resources or revenue resources which must, or must not, be taken into account for the purposes of subsection (1) or (as the case may be) subsection (2) or (3).

(5)The Secretary of State may not give a direction under subsection (1) or 40(2) unless the direction is for the purpose of complying with a limit imposed by the Treasury.

223FPower to establish contingency fund

(1)The Board may use a proportion of the sums paid to it under section 223B to establish a contingency fund.

(2)45The Board may make a payment out of the fund where the payment is necessary in order to enable—

Health and Social Care BillPage 27

(a)the Board to discharge any of its commissioning functions, or

(b)a commissioning consortium to discharge any of its functions.

(3)The Board must publish guidance as to how it proposes to exercise its powers to make payments out of the contingency fund.

(4)5In this section, “commissioning functions” means functions in arranging for the provision of services as part of the health service.”

Further provision about commissioning consortia

22Commissioning consortia: establishment etc.

(1)After Chapter A1 of Part 2 of the National Health Service Act 2006 insert—

“CHAPTER A210Commissioning consortia

Establishment of commissioning consortia

14AGeneral duties of Board in relation to commissioning consortia

(1)The Board must exercise its functions under this Chapter so as to ensure that at any time after the day specified in writing by the Secretary of 15State for the purposes of this section each provider of primary medical services is a member of a commissioning consortium.

(2)The Board must exercise its functions under this Chapter so as to ensure that at any time after the day so specified the areas specified in the constitutions of commissioning consortia—

(a)20together cover the whole of England, and

(b)do not coincide or overlap.

(3)For the purposes of this Chapter, “provider of primary medical services” means a person who is a party to an arrangement mentioned in subsection (4).

(b)arrangements under section 83(2) for the provision of primary medical services of a prescribed description,

(c)30section 92 arrangements for the provision of services of primary medical services of a prescribed description.

(5)Where a person who is a provider of primary medical services is a party to more than one arrangement mentioned in subsection (4), the person is to be treated for the purposes of this Chapter as a separate provider 35of primary medical services in respect of each of those arrangements.

(6)Where two or more individuals practising in partnership are parties to an arrangement mentioned in subsection (4), the partnership is to be treated for the purposes of this Chapter as a provider of primary medical services (and the individuals are not to be so treated).

Health and Social Care BillPage 28

(7)Where two or more individuals are parties to an arrangement mentioned in subsection (4) but are not practising in partnership, those persons collectively are to be treated for the purposes of this Chapter as a provider of primary medical services (and the individuals are not to 5be so treated).

14BApplications for the establishment of commissioning consortia

(1)An application for the establishment of a commissioning consortium may be made to the Board.

(2)The application may be made by any two or more persons each of 10whom—

(a)is or wishes to be a provider of primary medical services, and

(b)wishes to be a member of the commissioning consortium.

(3)The application must be accompanied by—

(a)a copy of the proposed constitution of the commissioning 15consortium,

(b)the name of the person whom the consortium wishes the Board to appoint as its accountable officer (as to which see paragraph 11 of Schedule 1A), and

(c)such other information as the Board may specify in a document 20published for the purposes of this section.

(4)At any time before the Board determines the application—

(a)a person who is or wishes to be a provider of primary medical services (and wishes to be a member of the consortium) may become a party to the application, with the agreement of the 25Board and the existing applicants;

(b)any of the applicants may withdraw.

(5)At any time before the Board determines the application, the applicants may modify the proposed constitution with the agreement of the Board.

(6)30Part 1 of Schedule 1A makes provision about the constitution of a commissioning consortium.

14CDetermination of applications

(1)The Board must grant an application under section 14B if it is satisfied as to the following matters.

(2)35Those matters are—

(a)that the constitution complies with the requirements of Part 1 of Schedule 1A and is otherwise appropriate,

(b)that each of the members specified in the constitution will be a provider of primary medical services on the date the 40consortium is established,

(c)that the area specified in the constitution is appropriate,

(d)that it would be appropriate for the Board to appoint, as the accountable officer of the consortium, the person named by the consortium under section 14B(3)(b),

Health and Social Care BillPage 29

(e)that the applicants have made appropriate arrangements to ensure that the commissioning consortium will be able to discharge its functions,

(f)that the applicants have made appropriate arrangements to 5ensure that the consortium will have a governing body which satisfies any requirements imposed by or under this Act and is otherwise appropriate, and

(g)such other matters as may be prescribed.

(3)Regulations may make provision—

(a)10as to factors which the Board must or may take into account in deciding whether it is satisfied as to the matters mentioned in subsection (2);

(b)as to the procedure for the making and determination of applications under section 14B.

14D15Effect of grant of application

(1)If the Board grants an application under section 14B—

(a)a commissioning consortium is established, and

(b)the proposed constitution has effect as the commissioning consortium’s constitution.